The present invention relates to a system and method for conducting on-line auctions of products and, more particularly, to an on-line auction system and method which enables bidders to bid and track, in real-time, an auction which is conducted for a short period of time and in which the quantity of the product auctioned changes according to the number of bidders participating in the auction.
Auctions provide a unique and exciting product purchasing environment. In the past, auctions were exclusively devoted to the sale of valuable products such as fine art, collectibles and luxury items. Thus, participation in these auctions was reserved for the extremely wealthy.
With the advent of telecommunications, auctions have become available to the general public.
For example, the use of television to auction items is described in an article entitled “Auctions Become High Tech”, Dealer Business, March 1995 V29 N7. The article describes an auction system in which an auction company sends a signal via satellite to the televisions of individual car dealers. The dealers view the car for sale on their televisions and bid on the car using a telephone or a remote terminal.
The widespread acceptability of the Internet as a connectivity medium has generated numerous Internet based auctions. These so called “on-line auctions” enable individuals to bid on a plethora of products typically ranging in price from several dollars to several thousand dollars or more.
Several on-line auctions are now being conducted over the Internet, either through electronic mail based bidding or web page based bidding. One example to electronic mail bidding is described in an article entitled “Cathay Pacific Airways-USA to Hold First Ever Internet CyberAuction” Business Wire, Sep. 26, 1995 p926-1084. This article describes how registered bidders can bid for airline tickets by submitting concealed bids through the electronic mail over a two week bidding session. The fifty highest bidders at the close of the bidding session receive an electronic mail message instructing them on how to purchase tickets.
More advanced on-line auctions are conducted through worldwide web sites, see for example, http://www.ebay.com or http://www.dealdeal.com. In these auction systems, bidders submit bids and are able to track the bidding in real-time through the Internet. Items for sale are graphically displayed on the bidders' screens, in addition to the bid information for each item. Bid information is updated throughout each bidding session which can last days or weeks.
Although on-line auctions present numerous advantages to both the seller and buyers, such auctions suffer from several inherent limitations.
Although bidding is conducted on-line, bidders cannot access or view the actual biding process but are typically periodically informed of the status of an auction either by electronic mail or web site updates.
In addition, since on-line auctions are oftentimes conducted over an extended time period, bidders spend a considerable amount of time tracking the status of their bid. On-line auctions are typically of the ascending-bid variety, bidders submit bids in real time dynamic process until no more bids are forthcoming. In such a format, each bidder is able to view information on other bids and as the auction progresses incorporate this information into subsequent bids thereof. Although this feedback tends to result in more efficient auction outcomes as well as more aggressive bidding which results in higher expected revenues for the seller, it has the disadvantage that in complex environments the auction may last for a long time, and require serious bidders to devote substantially all their time during this extended period of the auction.
There is thus a widely recognized need for, and it would be highly advantageous to have, an on-line auction method devoid of the above limitations.